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<ul class="summary-list"><li>Electricity and labor headwinds slow Amazon's data center buildout.</li><li>The company's predicament highlights challenges faced by the broader cloud industry.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/amazon-big-tech-cash-king-wall-street-wants-a-piece-2024-10">Amazon</a> is spending heavily on <a target="_blank" class="" href="https://www.businessinsider.com/ai-data-energy-centers-water-energy-land-2023-10">data centers</a> to support booming <a target="_blank" class="" href="https://www.businessinsider.com/amazon-ai-sales-machine-aws-google-microsoft-pressure-pay-speed-2024-9">AI</a> workloads, putting it on pace to build 240 new facilities by 2040, according to one estimate.These plans are increasingly running into physical constraints that are slowing the buildout, according to an internal document, people familiar with the matter, and emails obtained through a public-records request."Across the AMER region, we are experiencing headwinds in power, zoning and permitting, water, and workforce/labor that are providing challenges to our long-term capacity growth," the internal document stated, referring to the Americas market, Amazon's largest.As the biggest cloud provider, Amazon's predicament highlights broader <a target="_blank" href="https://www.businessinsider.com/ai-data-energy-centers-water-energy-land-2023-10">problems</a> facing the tech industry as generative <a target="_blank" class="" href="https://www.businessinsider.com/amazon-ai-sales-machine-aws-google-microsoft-pressure-pay-speed-2024-9">AI</a> upends the status quo. While more companies want access to cloud computing for AI initiatives, there's only so much power, water, and labor available to support these services.It's not just an Amazon problem. Sequoia Capital general partner David Cahn recently predicted data center delays across the sector."The need for more power and a better functioning grid was clear before AI," he wrote in a blog post. "Now, it is becoming urgent."<h2 id="4e19455f-0a20-458d-a775-e305cc9aed23">Energy demand is growing</h2>It may be natural for a company like Amazon, one of the largest and fastest-growing data center operators, to face these challenges when it is expanding at breakneck speed.Marc Wulfraat, president of consulting firm MWPVL, told BI that Amazon is probably rolling out even more than 240 data centers in coming years. That's because the cloud giant also leases space in buildings shared with other companies. Collectively, this building spree amounts to almost 75 million gross square feet of space, according to his estimates. That's the equivalent of roughly 27 Empire State Buildings.In an email to BI, Amazon's spokesperson said customers' energy demand "continues to grow," and the company is continuously working on ways to "efficiently build and operate data centers" to meet their needs."Nobody knows better than we do that building data centers is exceptionally complex, and by embracing that challenge, we've become really good at it over the years," the spokesperson added. "We're confident we can continue to build at a rapid pace to provide the cloud capacity our customers will need."<h2 id="3ffef594-735b-4945-a7b0-176832400209">Doubts about electricity supply</h2>Power might be the most scarce resource. US data center electricity consumption is forecast to triple by 2030, according to <a target="_blank" rel=" nofollow" href="https://www.linkedin.com/posts/bcg-on-energy_the-impact-of-genai-in-electricity-activity-7112787574032674816-uDEX/">Boston Consulting Group</a>, much of it to power generative AI. Bernstein Research recently <a target="_blank" href="https://www.businessinsider.com/ai-data-centers-us-power-grid-gpu-nvidia-cerebras-amazon-2024-7">estimated</a> that electricity demand for AI data centers could exceed supply in just two years without action.At Amazon, electricity shortages have been a major concern and a topic of almost every leadership meeting in recent years, according to the people familiar with the matter.Amazon is experiencing power-supply issues in Oregon, Ohio, and Northern Virginia, according to the internal document from May. For example, it noted that PacifiCorp, Amazon's Portland-based utility partner, has electricity shortfalls and generation constraints forecasted until 2030.This is leaving Amazon with unpredictable energy supply in some markets and a possible loss of "bridging" solutions that help maintain power during the early stages of construction."With the utility power headwind, we are seeing continued risk driven by transmission constraints as well as unexpected changes to committed/available generation, gaps in promised vs delivered incremental power, and potential loss of bridging power as utility infrastructure projects are delayed," the document explained.<h2 id="e085ef5b-5190-4456-935c-6cab05b23795">'Zombie' data centers</h2>In some markets, so-called "zombie" data centers exist. That's a term used by some Amazon employees who spoke with Business Insider about the electricity-supply problems.These facilities are also described internally as "operationally blocked" because the data centers can sometimes sit idle as they don't have access to enough power to run them, according to the people familiar with the matter.Amazon's spokesperson told BI the company is not familiar with these terms, but said there are a "very small number of cases" where the company decides to complete data center construction before building power is available. "These situations are all managed as part of the standard course of business," the spokesperson added.<div type="image" title="AWS CEO Matt Garman" height="4320" width="6751" msid="114502575" hostid="261" sizebytes="742626"></div>Amazon Web Services CEO Matt Garman recently spoke publicly about challenges related to AI data center buildouts, including accessing enough GPUs and power.During a podcast interview in August, he said customer demand is "mind boggling," which is requiring "a lot of investment.""We're probably going to be tight for the next little bit of time," Garman added.<h2 id="d47a3f17-b6c1-4c0c-91d9-5918b3a4761f">'Mosquitoes to light'</h2>The company is on the hunt for more energy. It's conducting "power studies" with utility partners to evaluate additional transmission capacity, which could result in more power allocation, according to the internal document.The company is also working on ways to reclaim stranded and retired power, the document said, likely in reference to the practice of redeveloping old power plants that have become inactive for economic or sustainability reasons.Amazon has been more actively seeking partnership opportunities with third-party colocation data center providers, one of the people said. At these facilities, Amazon would simply lease space, transferring the need to secure power to the data centers' owners.Additionally, Amazon has started looking beyond well-established data center markets, such as Northern Virginia and Arizona, and is expanding into newer regions like Indiana. Crowded data center regions are running out of power and other resources, making newer locations <a target="_blank" class="" href="https://www.businessinsider.com/ai-data-centers-energy-cloud-microsoft-chatpgt-amazon-google-2023-7">more appealing</a>.The company is also more aggressively pursuing alternative energy sources. Last week, Amazon <a target="_blank" href="https://www.businessinsider.com/amazon-invests-in-nuclear-for-aws-following-google-and-microsoft-2024-10">unveiled</a> a plan to lead a $500 million funding round to develop small modular nuclear reactors, following an earlier announcement to purchase a nuclear power plant in rural Pennsylvania."It's almost like mosquitoes to light — we are attracted to power," one of the people familiar told BI.Amazon's spokesperson said the company's data center expansion strategy considers several factors, including system resiliency and latency, the availability of renewable energy, and the local government's long-term commitment. Amazon is also constantly seeking ways to make its data centers more energy efficient by using carbon-free resources, in-house processors, and natural air cooling systems, the spokesperson said.<h2 id="82c2fbef-48d1-4af8-8635-cf74ee12697d">Higher costs in Silicon Valley</h2>In some cases, Amazon is paying higher prices to get its new data centers up and running.One example is an Amazon facility in Santa Clara, California, in the heart of Silicon Valley. For the last 2 years, Amazon has held talks with the city of Santa Clara to secure power for a new data center located near Levi's Stadium, the home of the San Francisco 49ers, according to a <a target="_blank" href="https://santaclara.granicus.com/player/clip/2140?view_id=1&amp;meta_id=190407&amp;redirect=true">city council meeting</a> held in July.Amazon is in talks for a 15-year, 20-megawatt proposal for this facility under the condition that the company pays the full cost of the energy, whether it uses the power or not, Manuel Pineda, the chief electric utility officer of the City of Santa Clara, said during the meeting. Amazon will have to pay up to 50% higher rates than normal and will be entitled to additional "financial assurances" to cover any contractual risks, Pineda added.As part of the deal, Amazon also plans to use the 20-megawatt power agreement for a second building on-site, which currently has no electric capacity, according to Pineda.Amazon's spokesperson told BI that this arrangement has not been finalized, and the project is progressing as expected.<div type="image" title="AWS Santa Clara data center planning slide" height="586" width="1056" msid="114502585" hostid="261" sizebytes="101810"></div><h2 id="5e7acce5-2a9c-4e0c-873a-74b683e1b0a3">Amazon escalates Santa Clara delays</h2>Amazon appears to be dealing with further delays in Santa Clara. On August 28, an AWS employee wrote to a city official about another facility, a former Owens Corning factory the company purchased in 2023. The email discussed delays at the site and noted that the problems are raising concerns internally at Amazon."Delays as significant as this unfortunately impact our ability to serve our customers which has resulted in escalation," said the email, which was obtained by BI through a public-records request.The next day, another Amazon employee wrote to a Santa Clara city official. "This is time sensitive," the staffer said. "AWS executives are highly concerned about the constant push in the results."<h2 id="a5ae3cc3-4484-42c7-a232-b1135b2bd3e0">'Straining' water infrastructure</h2>Another problem is water supply. A growing number of data centers rely on water instead of air to cool the servers and other equipment inside the facilities. This liquid-cooling technology <a target="_blank" href="https://www.businessinsider.com/arizona-running-out-of-water-data-centers-blame-microsoft-google-2023-6">requires a lot of water</a>.Amazon is "straining local jurisdictions' existing infrastructure" for water in some regions and is "dependent on long-term infrastructure upgrades or building our own solutions" to mitigate the issue, the internal document stated.There are zoning and permitting problems, too. Some local jurisdictions are not supporting the re-zoning of industrial property for data center use and have stricter environmental regulations, the document explained. Amazon is "working proactively" with local municipalities to solve these challenges, as they can impact its "future capacity options," the document added.Amazon is "one of the world's most water efficient operators" and its data centers are much more water efficient than the industry average, the company's spokesperson told BI.<h2 id="74b62895-25bd-411f-8890-035613989c55">'Lack of available skilled labor'</h2>An even bigger problem may be a lack of skilled electricians to build and run these data centers, according to the internal document and people directly involved in these Amazon projects.Electrical work is a major part of data center construction. But Amazon has struggled to find enough people to do the jobs, especially in rural areas, these people said. Amazon has talked to local colleges, general contractors, and labor unions in certain markets to increase the supply of electricians, one of the people said.<div type="image" title="amazon data center oregon" height="3072" width="4608" msid="114502582" hostid="261" sizebytes="883326"></div>A <a target="_blank" href="https://www.cnbc.com/2024/07/27/americas-demand-skilled-electricians-boom.html">shortage of skilled electricians</a> is a growing industry problem. According to last year's <a target="_blank" href="https://datacenter.uptimeinstitute.com/rs/711-RIA-145/images/2023StaffingSurvey.Report.12152023.pdf">Uptime Institute Data Center Staffing Survey</a>, more than half of respondents said they struggled to fill open positions due to demand outstripping supply."For workforce/labor, we are seeing a lack of available skilled labor," Amazon's internal document stated. "Which requires us to prioritize where we allocate these resources, and we are becoming increasingly reliant on more expensive travelling [primarily] electricians."Amazon's spokesperson shared <a target="_blank" href="https://www.aboutamazon.com/news/workplace/our-upskilling-2025-programs">blog posts</a> detailing its <a target="_blank" href="https://aws.amazon.com/government-education/workforce-development/aws-fiber-optic-fusion-splicing/">training programs</a> in this space, adding, "AWS has established a number of workforce development programs and collaborations with education institutions to help ensure a strong pipeline of talent."Do you work at Amazon? Got a tip?Contact the reporter, Eugene Kim, via the encrypted-messaging apps Signal or Telegram (<a target="_blank" rel="noopener noreferrer nofollow" class="c-link">+1-650-942-3061</a>) or email (<a target="_blank" href="mailto:ekim@businessinsider.com">ekim@businessinsider.com</a>). Reach out using a nonwork device. Check out Business Insider's <a target="_blank" rel="" href="https://www.businessinsider.com/insider-guide-to-securely-sharing-whistleblower-information-about-powerful-institutions-2021-10">source guide</a> for other tips on sharing information securely.

Amazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortages 

<ul class="summary-list"><li>The AI boom will nearly double demand for copper, mining firm BHP told the Financial Times.</li><li>BHP predicts demand will reach 52.5 million tons a year, 72% higher from 2021 levels.</li></ul>A rising <a target="_blank" href="https://markets.businessinsider.com/commodities/copper-price?utm_medium=ingest&amp;utm_source=markets">copper</a> shortage is set to intensify as artificial intelligence boosts demand for the red metal by as much as 72% in the coming decades, according to mining giant BHP.Chief Financial Officer Vandita Pant told the <a target="_blank" href="https://www.ft.com/content/da407b47-4133-470a-9574-508cee43e107">Financial Times</a> that AI data centers will account for 6% to 7% of copper demand by 2050. These centers currently make up less than 1%, she noted, but there increasing buildout requires more of the red metal.By another measure, BHP expects global demand for copper to rise 52.5 million tons a year by the mid-century, compared to 30.4 million tons in 2021.In recent years, a shortfall in the red metal has sparked concern among industries that depend on it, and commodity experts have forecast the demand-supply imbalance to hike prices through the years to come. Copper is a key material in various economic sectors, used in everything from construction to machinery.Global inventory <a target="_blank" href="https://africa.businessinsider.com/markets/copper-prices-could-soar-33-in-the-next-year-as-global-inventories-hit-lowest-since/2e3c17j?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">hit its lowest levels since 2008 last year</a>, with existing projects failing to keep up with demand. Meanwhile, new mines are not coming online fast enough — it typically takes <a target="_blank" href="https://markets.businessinsider.com/news/commodities/copper-price-outlook-forecast-record-supply-shortage-metal-demand-commodities-2024-5">15 years to open one.</a>These conditions caused copper prices to peak to a record high in May, though China's economic tumble has helped deflate prices to $9,207 a ton. However, some analysts see the commodity <a target="_blank" href="https://markets.businessinsider.com/news/commodities/copper-price-best-investment-jeff-currie-commodity-metal-shortage-industry-2024-5?utm_medium=ingest&amp;utm_source=markets">rising $15,000</a> to $40,000 as the shortage becomes more apparent.The industry has turned to mergers and acquisitions to increase output. BHP, for example, partnered with Lundin Mining in July to purchase exploration firm Filo for $3 billion, FT reported.But AI will compound demand for copper moving forward, as the metal is a key ingredient in electrifying the data centers that run the technology.Meanwhile, the chips that power the tech are extremely power-intensive, adding to the situation. Bank of America projects that an additional <a target="_blank" href="https://markets.businessinsider.com/news/commodities/ai-power-grid-demand-utility-bill-outlook-electricity-ev-2024-7">18 to 28 gigawatts of electric capacity will needed by 2026</a>.Previously, the bank also considered copper prices to <a target="_blank" href="https://markets.businessinsider.com/news/commodities/gold-price-copper-oil-cocoa-commodities-inflation-interest-rates-economy-2024-4">benefit from the expansion of AI data centers.</a> It predicted that the metal could hit $5.44 a pound by 2026, indicating 27% upside from current levels.

AI will nearly double demand for copper, which is already facing a global shortage

<ul class="summary-list"><li>Russian troops in Ukraine are likely facing water shortages, the UK's Ministry of Defence has said.</li><li>It likely comes as the result of Russian strikes on utility infrastructure, the MoD said.</li></ul>Russian troops fighting in Ukraine are likely facing water shortages, with some turning to "stagnant puddles" to get water, <a target="_blank" class="" href="https://x.com/DefenceHQ/status/1823273344818376738">the UK Ministry of Defence (MoD) said in an update on the conflict</a>."Damage inflicted during ongoing Russian strikes against utilities infrastructure is now almost certainly curtailing water supply," the MoD said in an update on the conflict, adding that any issues had been "exacerbated by a period of above average temperature in the region."In response, Russian forces have resorted to makeshift water filtration techniques, using "stagnant puddles for daily water requirements," per the MoD, which adds that this has "highly likely led to an increase of waterborne diseases amongst Russian soldiers.""This shortage of water leading to dehydration and increased risk of infection, will almost certainly impact morale and operational effectiveness," it adds.The MoD also referenced the account of a pro-Russian military blogger who said that Russian pilots had been limited to one liter of water a day.The Centers for Disease Control and Prevention <a target="_blank" class="" href="https://www.cdc.gov/niosh/mining%5C/UserFiles/works/pdfs/2017-126.pdf">recommends</a> people working in high temperatures drink one cup of water every 15 to 20 minutes — around three-quarters to one quart (almost one liter) per hour.Ukraine has experienced record-breaking temperatures this summer.On July 16, Kyiv hit 36 degrees Celsius (96.8 degrees Fahrenheit), the highest temperature on record for that date, according to the Borys Sreznevsky Central Geophysical Observatory.The high temperatures have led to electricity cuts and negatively impacted grain and oilseed crops, per <a target="_blank" class="" href="https://www.reuters.com/world/europe/ukraine-set-rain-after-record-breaking-heatwave-forecaster-says-2024-07-17/">Reuters</a>.

Russian troops likely facing water shortages in Ukraine, with some now drinking from 'stagnant puddles': UK intel     

<ul class="summary-list"><li>The severe accountant shortage is causing companies to delay filing key mandatory reports.</li><li>Tupperware has delayed its annual report due to accounting department shortages and resource gaps.</li></ul>The accountant shortage is so bad that companies are delaying filing key mandatory reports.On Friday, Tupperware said it didn't have enough accountants to get its annual report out on time. The storage container manufacturer is the latest on a growing list of companies that have delayed their annual reports for a host of reasons. About 70 companies have postponed annual reports this year, up 40% from last year, research company Intelligize <a target="_blank" href="https://www.intelligize.com/inadequate-internal-controls-contribute-to-surge-of-delayed-annual-reports/">tallied last month</a>.In a regulatory filing, Orlando-based Tupperware blamed the delay on "significant" past and present accounting attrition, "which has resulted in resource and skill set gaps, strained resources, and a loss of continuity of knowledge."Tupperware added that previous delays in filing its 2022 annual report led to postponement of its quarterly reports, which subsequently pushed back work on its 2023 annual report.On LinkedIn, the company is <a target="_blank" href="https://www.linkedin.com/jobs/search/?currentJobId=3876349592&amp;f_C=166537&amp;geoId=92000000&amp;origin=COMPANY_PAGE_JOBS_CLUSTER_EXPANSION&amp;originToLandingJobPostings=3863342135%2C3856847413%2C3856000722%2C3876349592%2C3852152013%2C3852157350">hiring</a> for a single accountant, a job in Poland.Once an American kitchen icon, the manufacturer now faces a slew of business problems. In October, its external accounting firm, PricewaterhouseCoopers, dropped the company as a client. Almost a year ago, Tupperware warned investors of <a target="_blank" href="https://www.businessinsider.com/tupperware-brand-history-parties-plastic-containers-earl-tupper-brownie-wise-2023-4#at-the-same-time-more-women-than-ever-were-working-full-time-12">potential bankruptcy</a> amid greater losses and operational costs.'Accountant staffing issues at Tupperware and other businesses are becoming an operational headache with no signs of abating.Seasoned accountants are retiring while the profession, which has a reputation for long hours and unfulfilling work, <a target="_blank" href="https://www.businessinsider.com/shortage-accountants-we-should-be-worried-recruit-young-talent-2023-2">has struggled to attract</a> younger talent. The American Institute of Certified Public Accountants said that 75% of certified accountants <a target="_blank" href="https://www.cpajournal.com/2022/11/25/fixing-the-crisis-in-accounting/">reached retirement age</a> in 2020. The US Bureau of Labor Statistics <a target="_blank" href="https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm#tab-1">projects</a> there will be 126,500 openings for accountants and auditors each year, on average, over the decade.But many students say they are turned off by the <a target="_blank" href="https://www.cpajournal.com/2023/12/01/the-accounting-profession-is-in-crisis/">fifth year of college </a>needed for accounting courses. And accountants' average <a target="_blank" href="https://www.salary.com/research/salary/alternate/entry-level-staff-accountant-salary">starting salary </a>of about $62,000 looks less appealing than other higher-paying or lower-stress jobs in business."Accountants and auditors are to business as those people in the black-and-white-striped shirts are to sports. We're the referees of business," Steven Kachelmeier, the chair of the accounting department at the University of Texas, <a target="_blank" href="https://www.businessinsider.com/shortage-accountants-we-should-be-worried-recruit-young-talent-2023-2">told</a> Business Insider last year."We may not always like the referees, but sports is a free-for-all without them," he said, explaining that if shortages of these workers continue, accountability and integrity in business could suffer.This year has seen a slate of high-profile financial reporting errors, some of which caused stock prices to change. In February, ride hailing app Lyft erroneously <a target="_blank" href="https://www.businessinsider.com/lyft-ceo-comments-earnings-typo-cfo-job-safe-2024-2">reported</a> in its fourth-quarter earnings release that it expects profit margins to increase by 500, not 50 basis points — which led its stock to surge 60%. Electric vehicle maker Rivian and gym company Planet Fitness said they made<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-02-22/clerical-errors-pile-up-in-earnings-a-week-after-lyft-gaffe"> earnings typos</a> this year.In a similar move to Tupperware, toy giant Mattel said in a <a target="_blank" href="https://apps.intelligize.com/SECFilings/SimplifiedDocumentView/Filings/21512411">February filing</a> that it was unable to file its 2023 annual report due to "certain deficiencies in its internal control over financial reporting."The Securities and Exchanges Commission can issue penalties for erroneous filings, including fines for delays and errors in financial reporting.

The accountant shortage is so bad that it's delaying key reports at companies like Tupperware

<ul class="summary-list"><li>Russia artillery advantage in the Ukraine war is set to double soon, a top US general said.</li><li>Ukraine's critical supply of artillery ammo is dwindling.</li></ul>US European Command's Gen. Chris Cavoli says Russia's artillery advantage over Ukraine will double within weeks as the latter's supply shortages persist."We're not talking about months, we're not talking hypothetically," Cavoli said during a House Armed Services Committee Hearing on Wednesday, adding that "the biggest killer on the battlefield is artillery in most conflicts, but in this one, definitely."Russia's military is currently firing five times as many shells as Ukraine is. In a matter of weeks, the ratio could shift to 10:1, Cavoli said. Ukraine had the artillery advantage last summer, but now it is firing about 2,000 shells while <a target="_blank" href="https://www.businessinsider.com/ukraine-ammunition-shortages-make-russia-alpha-predator-us-veteran-2024-3">Russia hammers its positions</a> with 10,000 shells each day. The <a target="_blank" href="https://www.businessinsider.com/ukraine-was-crushing-in-avdiivka-before-ammo-stopped-us-veteran-2024-4">impact of the shortages</a> has been palpable."Ukrainians have been husbanding their shells in anticipation of the supply running out," Cavoli said. "The situation is extremely serious."<div type="image" title="Ukrainian service members of the 55th Separate Artillery Brigade fire a Caesar self-propelled howitzer towards Russian troops, amid Russia's attack on Ukraine, near the town of Avdiivka in Donetsk region, Ukraine May 31, 2023Ukrainian service members of the 55th Separate Artillery Brigade fire a Caesar self-propelled howitzer towards Russian troops" height="1333" width="2000" msid="109205167" hostid="261" sizebytes="233716"></div>The top US general in Europe said that American contributions of artillery systems, ammunition, and air defense interceptors are extremely <a target="_blank" href="https://www.businessinsider.com/ukraine-ammunition-shortages-make-russia-alpha-predator-us-veteran-2024-3">critical for Ukrainian defense</a>, but right now, Ukraine is running short on both of these.Celeste Wallander, the Assistant Secretary of Defense for International Security Affairs, said during the congressional hearing Wednesday that the Ukrainians "are having to decide what to defend and that's why the Russian attacks are getting through and really harming the Ukrainian electricity grid."Lately, Russia has <a target="_blank" href="https://www.businessinsider.com/kharkiv-needs-more-patriot-air-defenses-stop-russian-strikes-zelenskyy-2024-4">stepped up its attacks on Ukrainian cities</a>, Kharkiv in particular. The city has been hit by missiles, one-way attack drones, and glide bombs to devastating effect.Cavoli said that Russia's large scale aerial attacks are capable of destroying Ukraine's economy if Ukraine can't defend itself with the help of US security assistance, roughly $60 billion of which has been <a target="_blank" href="https://www.businessinsider.com/us-veteran-ukraine-gop-funding-block-makes-rethink-party-support-2024-4">held up in Congress for months</a> now and is currently awaiting approval in the House.Ukraine's military has been heavily reliant on drones as alternatives to artillery shells. A NATO official told Foreign Policy this week that the country's drones are <a target="_blank" href="https://www.businessinsider.com/ukraine-drones-russia-tank-losses-reflects-shortages-artillery-report-2024-4">behind over two-thirds of the kills of Russian tanks</a>.But Ukrainian President Volodymyr Zelenskyy has said that the unmanned systems are <a target="_blank" href="https://www.businessinsider.com/ukraine-drones-cant-replace-weapons-it-really-needs-zelenskyy-says-2024-4">no substitute for the weapons that Ukraine really needs</a>, like artillery, air defenses, and long-range missiles."It is necessary to specifically tell Congress that if Congress does not help Ukraine, Ukraine <a target="_blank" href="https://www.businessinsider.com/ukraine-will-lose-war-russia-congress-funding-not-approved-zelenskyy-2024-4">will lose the war</a>," Zelenskyy said last Sunday.

Russia's artillery advantage over Ukraine will double in only a matter of weeks as shortages bite, top US general in Europe warns

New Delhi, Global electrification, previously driven by strong electric vehicle sales, is now showing signs of growth moderation despite supply chain normalisation and price reductions by OEMs, as per a report by <keyword id="20309623" type="General" weightage="20" keywordseo="jm-financial-institutional-securities" source="keywords">JM Financial Institutional Securities</keyword>. Global automakers like <keyword id="19911527" type="General" weightage="20" keywordseo="mercedes" source="keywords">Mercedes</keyword>, Ford, GM, VW are scaling back EV investments and turning towards <keyword id="19906936" type="General" weightage="20" keywordseo="hybrids" source="keywords">hybrids</keyword> due to shifting consumer preferences and challenges like inadequacy and slow pace of charging infrastructure expansion. We believe the situation is no different in India, the analysts said. <keyword id="19906967" type="General" weightage="20" keywordseo="tata-motors" source="keywords">Tata Motors</keyword> reduced its EV sales estimate and prices recently to boost adoption, citing similar hurdles. MSIL, with its tech-agnostic approach (Hybrids, EVs, CNG, Flex-fuel, etc.), is well-positioned (&amp; hedged) amidst slowing pace of electrification, the report said. Reports indicate of MSIL's strong Hybrid model launch pipeline going forward (five models in next 2-3 years). Tax rationalisation on hybrids could act as a fillip and shift consumer preference towards this choice of powertrain, it added. Till last year, global electric vehicle sales continued to outpace supplies (partially owing to semiconductor shortages) with OEs' orderbook piling to record levels. However, despite normalisation of supply chain, pace of electrification seems to have moderated. Reduction in EV prices (by <keyword id="19895433" type="General" weightage="20" keywordseo="tesla" source="keywords">Tesla</keyword>, Ford etc.) to drive wider adoption also isn't helping. Global automakers like Mercedes, Ford, GM, VW have deferred EV related investments, reduced their EV sales guidance indicating moderation in EV growth going ahead, the research said. Few of these auto OEMs are turning their focus back to Hybrids amidst shifting consumer preference. Domestic demand scenario for electric PVs is no different. Recently, Tata Motors (market leader with 73% share) reduced its FY24 EV sales estimate by 20% (to 75-80K units) and also cut prices by upto Rs 125K/vehicle to drive wider adoption. Lack of adequate charging infra and hesitant customers (to pay premium over ICE vehicles) are the primary reasons for slower EV adoption, the report said. Currently, MSIL is working on multiple technologies (Hybrids, EVs, Flex-fuel and Bio-gas in addition to ICE/CNG) as the company believes multiple technologies can co-exist in the medium-to-long term. Its current tech-agnostic approach is again a well thought-out approach against committing resources to a single technology, the report said.

Global automakers scale back electric vehicles, turn towards hybrids

<ul class="summary-list"><li>The chip shortage has ailed the auto industry since early in COVID, but a bigger issue is surfacing.</li><li>Automakers are starting to see the impacts of the electric vehicle battery crunch.</li></ul>It's official: <a href="https://www.businessinsider.com/startups-racing-to-supply-360-billion-electric-vehicle-battery-market-2022-4">The battery crunch</a> is the new chip shortage.The <a href="https://www.businessinsider.com/car-buying-tips-inventory-dealerships-chip-shortage-impact-vehicle-prices-2023-1">chip shortage is still impacting vehicle supply</a>, experts say, but automakers are now having to reckon with the battery supply chains as an even bigger headwind. Challenges surrounding electric vehicle production and the battery supply chain are finally materializing for legacy automakers and impacting their bottom lines.Ford, GM, and Porsche pointed to delays, constraints, and expenses related to EVs and their batteries in recent financial results. These issues are not only causing them to fall short of their ambitious electrification targets but also impacting their balance sheets. <a href="https://www.businessinsider.com/ford-ev-production-slow-thanks-to-tesla-price-war-2023-7">Ford CEO Jim Farley said during the company's last earnings call</a> that with regard to EVs, "pricing pressure has dramatically increased in the past 60 days." Much of that stems from an <a href="https://www.businessinsider.com/tesla-ev-price-war-creating-headache-entire-auto-industry-2023-4">EV price war brought on by Tesla and Elon Musk</a>. One of the biggest reasons it's more difficult for a company like Ford to lower its EVs prices is because it hasn't yet hit production scale in the same way Tesla has, especially when it comes to batteries, which would bring down overall costs. Ford expects to lose $4.5 billion on EVs this year.Meanwhile, GM CEO Mary Barra told investors that while the company is targeting building 100,000 EVs in the second half of 2023, one of its equipment suppliers is experiencing delivery issues that is constraining GM's battery module assembly."We have experienced unexpected delays in the ramp," Barra said — an indicator that bottlenecks are to come from the <a href="https://www.nytimes.com/2023/07/25/business/general-motors-electric-vehicles-profits.html">battery side of the business</a>. Battery shortages were blamed for <a href="https://electrek.co/2023/07/17/gm-battery-production-woes-worsen-cami-ev-plant-shuts-down/">GM halting production at a Canadian manufacturing plant</a> earlier this month, according to Electrek. And at Porsche, hitting this year's target will require a better battery situation, executives said."There is no week where we have no supply chain issue," CEO Oliver Blume told media, per a <a href="https://www.reuters.com/business/autos-transportation/porsche-confirms-forecast-107-higher-operating-profit-h1-2023-07-26/#:~:text=%22There%20is%20no%20week%20where,down%201.5%25%20at%200815%20GMT.">Reuters report</a>. <a href="https://www.businessinsider.com/china-crushing-us-america-battle-energy-evs-batteries-tech-war-2023-5">Battery supply issues</a> have long been looming, but as <a href="https://www.businessinsider.com/auto-companies-copy-tesla-succeed-electric-vehicles-batteries-2022-12">auto companies across the globe race to snatch up EV market share</a> and spend billions to electrify, the <a href="https://www.businessinsider.com/electric-vehicle-revolution-hits-delays-production-sales-tesla-china-2023-4">challenges have manifested quickly</a>. Before, it wasn't as obvious just exactly where hold-ups would come into play. Now, combined with sourcing requirements like those in the Inflation Reduction Act, and a mash dash for <a href="https://www.businessinsider.com/electric-vehicle-battery-execs-poised-to-win-the-booming-business-2022-9">raw materials, processing power, and manufacturing capability</a> has <a href="https://www.wsj.com/articles/big-automakers-grab-1-billion-deal-for-urgently-needed-battery-metals-edb0c998">automakers scrambling</a>. Competition is fierce, and while <a href="https://apnews.com/article/china-ev-lithium-united-states-battery-87eb9382a0181bb7ee64e835efe7b170">auto companies are making agreements and signing onto partnerships</a> to reduce the blow from the supply chain, the road to EVs is likely to remain rocky.

It's official: The battery crunch is the new chip shortage

<ul class="summary-list"><li><keyword id="13645531" type="UNKNOWN" weightage="60" keywordseo="rj-scaringe" source="Orion">RJ Scaringe</keyword> says a shortage of <keyword id="12145291" type="UNKNOWN" weightage="60" keywordseo="ev-batteries" source="Orion">EV batteries</keyword> could soon become a bigger issue than the chip shortage.</li><li>Alix Partners estimated the computer chip shortage caused automakers to lose $210 billion in 2021.</li></ul><keyword id="7067009" type="UNKNOWN" weightage="60" keywordseo="rivian" source="Orion">Rivian</keyword> CEO RJ Scaringe warned that a shortage of electric-car batteries could soon eclipse the issues that the automotive industry has faced from the <a href="https://www.businessinsider.com/chip-shortage-impacting-cars-smartphones-pcs-gaming-consoles-2021-2">computer chip shortage.</a>"Semiconductors are a small appetizer to what we are about to feel on battery cells over the next two decades," Scaringe said, according to a <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.wsj.com%2Farticles%2Frivian-ceo-warns-of-looming-electric-vehicle-battery-shortage-11650276000">report from The Wall Street Journal.</a> The Rivian CEO made the comment while giving reporters a tour of the <a href="https://www.businessinsider.com/rivians-second-new-manufacturing-plant-capacity-risk-consumer-demand-2021-12">company's plant</a> in Normal, Illinois.Over the past two years, the chip shortage has led companies to <a href="https://www.businessinsider.com/chip-shortage-expected-cost-auto-industry-car-makers-110-billion-2021-5">slash production</a> and <a href="https://www.businessinsider.com/bmw-touchscreen-chip-shortage-new-car-tech-features-2021-11">cut electronic features</a> like touch screens and seat heaters. In September, consulting firm <a href="https://www.alixpartners.com/media-center/press-releases/press-release-shortages-related-to-semiconductors-to-cost-the-auto-industry-210-billion-in-revenues-this-year-says-new-alixpartners-forecast/">AlixPartners</a> estimated that the chip shortage would cost automakers <a href="https://www.businessinsider.com/global-chip-shortage-supply-chain-cost-auto-industry-210-billion-2021-9">over $210 billion in 2021.</a>Now, automakers looking to branch out into <keyword id="6358835" type="UNKNOWN" weightage="60" keywordseo="electric-cars" source="Orion">electric cars</keyword> could face a <a href="https://www.cnn.com/2022/02/22/cars/electric-vehicle-battery-supply-chain/index.html">critical shortage</a> of EV batteries, as well as the metals required to produce the roughly 1,000 pound lithium-ion batteries."Put very simply, all the world's cell production combined represents well under 10% of what we will need in 10 years," Scaringe said, according to The Journal. "Meaning, 90% to 95% of the supply chain does not exist," he added.Scaringe told reporters that Rivian's strategy for securing battery cells is to diversify its suppliers, as well as build up its capacity to create its own battery cells. The Rivian CEO is not the first to express concern over future EV battery supplies. <keyword id="11900744" type="UNKNOWN" weightage="60" keywordseo="tesla" source="Orion">Tesla</keyword> CEO <keyword id="11897862" type="UNKNOWN" weightage="60" keywordseo="elon-musk" source="Orion">Elon Musk</keyword> has <a href="https://www.thestreet.com/investing/elon-musk-cautions-battery-cell-shortage-may-hit-tesla-semi">repeatedly warned</a> battery supplies could become a major issue.Earlier this month, <a href="https://twitter.com/elonmusk/status/1512505545416224783?s=12&amp;t=aarSBBz8lgZew9b2v9BbLg">Musk said</a> Tesla is considering getting into mining and refining lithium. In 2020, Tesla secured its own rights to mine lithium in Nevada after a deal to buy a lithium mining company fell through, <a href="https://fortune.com/2020/09/28/tesla-mine-lithium-batteries-cheaper-cars/" target="_blank" rel="noopener">according to Fortune.</a>Over the past year, prices for the metal have more than quadrupled as the pace of lithium extraction has lagged behind demand for electric <keyword id="20632" type="UNKNOWN" weightage="60" keywordseo="cars" source="Orion">cars</keyword>, according to data from <a href="https://www.benchmarkminerals.com/lithium-prices/" target="_blank" rel="noopener">Benchmark Mineral Intelligence</a>. Last month, <a href="https://www.bloomberg.com/news/articles/2022-03-07/nickel-jumps-to-record-high-as-supply-risk-sparks-short-squeeze">nickel prices</a> hit their highest level in over 20 years.Last year, the Center for Automotive Research (CAR) <a href="https://www.forbes.com/sites/neilwinton/2021/07/27/battery-scarcity-will-dwarf-chip-shortage-impact-on-global-auto-sales-report/?sh=234254d8363e">released a report</a> that found that battery cell production will not be able to meet demand until 2030, causing an estimated shortage of over 18.7 million electric cars between 2022 and 2029."Although considerable production capacities for lithium-ion cells are being built up in the US, Europe, and China, the construction of the cell factories takes time, as does the material chains for anodes and cathodes, ranging from lithium, cobalt, nickel and manganese," the report said.Scaringe acknowledged that, as a new player in the auto industry, the company has faced difficulty securing computer chips. The carmaker has cut its production targets for 2022 in half as a result."I'm on the phone with semiconductor supplier CEOs every day," Scaringe said, according to <a href="https://www.axios.com/rivian-opportunity-at-risk-b6d67816-fa69-44ac-980f-e1cab96cc972.html?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=newsletter_axiosgenerate&amp;stream=top">report from Axios</a>. "It's a day-in, day-out battle for allocation and the number we get is precisely equal to the number of vehicles we build," he added.Rivian began selling its first models last fall — the R1T truck and R1S SUV. Last year, the electric-car maker had a blockbuster IPO that <a href="https://markets.businessinsider.com/news/stocks/rivian-ipo-valuation-value-amazon-ev-startup-66-billion-trading-debut-tesla">briefly valued</a> the company over top automakers like Ford and General Motor, but since then Rivian's <a href="https://finance.yahoo.com/quote/RIVN/">share price</a> has dipped.

Rivian CEO warns the looming EV battery shortage will make the chip shortage feel like 'a small appetizer' for what's to come

<ul class="summary-list"><li>Nio shares fell Wednesday after the electric-vehicle maker reduced its third-quarter delivery guidance. </li><li>The Chinese automaker cited "continued uncertainty and volatility of semiconductor supply" as a reason for cutting its outlook. </li><li>Nio expects to deliver 22,500 to 23,500 vehicles in the third quarter, down from its previous range of 23,000 to 25,000 units. </li></ul><a href="https://markets.businessinsider.com/stocks/nio-stock">Nio</a> shares declined as much as 5% on Wednesday after the Chinese electric-vehicle maker lowered its third-quarter outlook for deliveries because of semiconductor supply constraints. The company now expects to deliver 22,500 to 23,500 vehicles in the third quarter, down from its previous outlook of 23,000 to 25,000 units. The global automotive industry has been <a href="https://markets.businessinsider.com/news/commodities/supply-chains-chip-shortage-auto-semiconductor-sectors-ford-toyota-tsmc-2021-08">plagued by a chip shortage and supply constraints</a> for more than a year, prompting other car manufacturers including <a href="https://markets.businessinsider.com/stocks/tm-stock">Toyota Motor</a> and <a href="https://markets.businessinsider.com/stocks/f-stock">Ford Motor</a> to reduce production at their factories. Nio also said Wednesday it delivered 5,880 vehicles in August, representing year-over-year growth of 48.3%."While the company's new order reached an all-time high in August driven by the increasing demand, the vehicle production, especially the manufacturing of the ES6 and EC6, was materially disrupted by <keyword id="12002865" type="UNKNOWN" weightage="60" keywordseo="supply-chain-constraints" source="Orion">supply chain constraints</keyword> resulting from the COVID-19 pandemic in certain areas in China and Malaysia," it said.After seeing torrid gains to start 2021, Nio's stock is now down nearly 20% year-to-date.<div type="image" title="nio stock chart 9-1-21" height="641" width="792" msid="85834506" hostid="261"></div>

Nio drops after cutting its 3rd-quarter vehicle-delivery outlook due to supply-chain pressure

<ul class="summary-list"><li>The US hasn't built enough homes in recent decades.</li><li>The shortage is among the reasons homes are unaffordable for many Americans.</li></ul>The <a href="https://www.businessinsider.com/why-theres-a-housing-shortage-not-enough-homes-high-prices-2022-5">US housing shortage</a> isn't just fueling an <a href="https://www.businessinsider.com/housing-market-affordability-crisis-not-enough-homes-to-meet-demand-2022-8">affordability crisis</a>. It could be contributing to <a href="https://www.businessinsider.com/housing-market-affordability-crisis-climate-change-inequality-fertility-home-construction-2021-9">several of the major problems</a> the country is facing. Imagine you're a city-dweller <a href="https://www.businessinsider.com/americans-earning-over-100000-living-paycheck-to-paycheck-2023-1">living paycheck-to-paycheck</a>. You're trying to save so you can afford a down payment on a home someday, but there's not much left to <a href="https://www.businessinsider.com/new-york-city-cost-of-living-rent-young-people-2022-10">stash away after paying rent</a>.A few years later, you buy a home that's probably a little <a href="https://www.businessinsider.com/homeowners-house-poor-working-second-jobs-taking-on-debt-mortgages-2021-12">more expensive than you can afford</a>. You used to walk to work, but given you now live an hour away from your job in the city, you begin <a href="https://www.businessinsider.com/reasons-to-stop-driving-gas-prices-car-free-activist-2022-9">spending much more time in a car</a>. You make plans to start a family over the next year, but given the cost of the home, the extra years it took to finally obtain it, and its modest size, you decide to <a href="https://www.businessinsider.com/why-millennials-birth-fertility-rate-declining-fewer-babies-2022-1">aim for a fewer number of children</a> than you had previously envisioned. This is the gist of the "housing theory of everything," coined in 2021 by economists Sam Bowman and Ben Southwood and housing advocate John Myers. They wrote in the Stripe-owned online magazine <a href="https://www.worksinprogress.co/issue/the-housing-theory-of-everything/" target="_blank" rel="noopener">Works In Progress</a> that the substantial <a href="https://www.businessinsider.com/housing-market-shortage-crisis-congress-build-back-better-plan-construction-2021-10">shortage of homes in the US</a> is a <a href="https://www.businessinsider.com/housing-market-affordability-crisis-not-enough-homes-to-meet-demand-2022-8">key driver of more than just falling housing affordability</a> in recent decades. "Western housing shortages do not just prevent many from ever affording their own home. They also drive inequality, climate change, low productivity growth, obesity, and even falling fertility rates," they <a href="https://www.worksinprogress.co/issue/the-housing-theory-of-everything/">said</a>.While roughly two-thirds of <a href="https://www.bankrate.com/insurance/homeowners-insurance/home-ownership-statistics/#stats" target="_blank" rel="noopener">US households are owner-occupied</a>, the country is short between <a href="https://www.washingtonpost.com/business/2023/01/25/white-house-renter-protection/" target="_blank" rel="noopener">1.5 million and 6 million homes</a>, according to various analyses. The <a href="https://www.businessinsider.com/americans-are-moving-less-social-demographic-changes-2022-8">housing market's crash</a> during the Great Recession led the industry to pull back on construction for many years, and <a href="https://www.fanniemae.com/research-and-insights/perspectives/us-housing-shortage#:~:text=The%20pandemic%2Dinduced%20materials%20and,slowdown%20could%20reduce%20demand%20further." target="_blank" rel="noopener">materials and labor shortages</a> during the height of the pandemic fueled another slowdown. Some have pointed to <a href="https://www.theatlantic.com/ideas/archive/2023/01/housing-crisis-hedge-funds-private-equity-scapegoat/672839/" target="_blank" rel="noopener">complex rules and regulations</a> — many of them related to environmental concerns — that have made it more difficult to build homes.With the US <a href="https://www.businessinsider.com/americans-are-moving-less-social-demographic-changes-2022-8">homeowner vacancy rate</a> — the percent of units available for occupancy — near record lows, the <a href="https://fred.stlouisfed.org/series/RHVRUSQ156N" target="_blank" rel="noopener">lack of supply</a> has contributed to soaring prices. As of last June, the combination of elevated prices and interest rates made the housing market "<a href="https://www.fanniemae.com/research-and-insights/forecast/awaiting-improvement-affordability" target="_blank" rel="noopener">more unaffordable than at the peak of the runoff in 2005</a>," Mark Palim, Deputy Chief Economist for Fannie Mae, told Insider.The housing theory of everything, however, suggests that this lack of affordability is far from the only American problem the housing shortage is contributing to. <h2>Homeowners benefit way more from a good economy and suffer less in a bad one</h2>The authors pointed to a 2021 paper by two <a href="https://journals.sagepub.com/doi/10.1177/00031224211027800" target="_blank" rel="noopener">University Of Michigan researchers</a>, which concluded that the primary driver of US wealth inequality is not <a href="https://www.businessinsider.com/3-policies-reverse-income-inequality-us-capitalism-2022-6">income inequality</a> — but housing inequality. When housing shortages drive up home prices, it's the existing homeowners — who tend to <a href="https://www.businessinsider.com/wealth-created-by-the-housing-boom-is-driving-economic-inequality-2022-5">be more well off</a> — that benefit, the authors argued, <a href="https://www.businessinsider.com/poorer-americans-dont-know-when-to-buy-or-sell-home-2022-2">at the expense of new homebuyers</a>. "A fixed supply of housing means improvements in people's aggregate incomes often partially go to landowners, since people bid up the price of housing with some of their increased income," they said.And when homeownership — a <a href="https://www.businessinsider.com/hispanic-homeownership-real-estate-investing-generational-wealth-income-retirement-2022-2">driver of wealth for many families</a> — is out of reach for Americans, this can contribute to persisting inequality. Roughly 90% of US households in the top 20% income bracket own their own homes, according to a 2021 <a href="https://www.clevelandfed.org/publications/economic-commentary/2021/ec-202122-evaluating-homeownership-as-the-solution-to-wealth-inequality" target="_blank" rel="noopener">Cleveland Fed report</a>, compared to less than half of households in the bottom 20%. Even for households that are content as renters, a shortage of homes pushes more people to rent, which ultimately <a href="https://www.businessinsider.com/rent-prices-rise-record-june-housing-market-crisis-real-estate-2021-8">drives up rental rates</a>. <h2>Fewer homes in cities increases car use and worsens climate change </h2>Americans are the kings of the road. As of 2015, the US had 823 cars per 1,000 people, <a href="https://countryeconomy.com/business/motor-vehicle-in-use">more than any other country in the world</a>. In 2019, the average American traveled <a href="https://frontiergroup.org/resources/fact-file-americans-drive-most/">roughly two times the number</a> of miles in vehicles than countries like France, Germany, or the UK. Most of these <a href="https://www.businessinsider.com/electric-vehicles-accounted-global-auto-sales-could-quadruple-2030-report-2023-1">vehicles are not yet electric</a>, which means US drivers are responsible for a <a href="https://www.scientificamerican.com/article/u-s-emissions-rise-4-percent-as-drivers-log-a-record-number-of-miles/">boatload of carbon emissions</a> that are fueling the broader climate crisis. While Americans surely love their vehicles, many are also dependent on them as a means of transportation. A shortage of housing in more densely populated areas like cities, the authors argued — where cars as less necessary — have pushed people out to areas where they need a vehicle to get to work and the grocery store. The authors compared the US to Japan, where they said lighter regulations have allowed the country's cities "to grow far more densely" than those in the States. On the whole, Japan is roughly <a href="https://www.worlddata.info/country-comparison.php?country1=JPN&amp;country2=USA" target="_blank" rel="noopener">12 times more densely populated</a> than the US. This is among the reasons, they argued, that people in Japanese cities <a href="https://frontiergroup.org/resources/fact-file-americans-drive-most/" target="_blank" rel="noopener">drive significantly le</a><a href="https://frontiergroup.org/resources/fact-file-americans-drive-most/" target="_blank" rel="noopener">ss than Americans</a> and have had <a href="https://www.worldometers.info/co2-emissions/co2-emissions-per-capita/">lower per capita carbon emissions</a>. "Most American cities are far too spread out to get around by walking, cycling or even public transport, which needs dense pockets of population to be efficient," they said.When increased driving leads to less physical activity among a substantial portion of the population, obesity <a href="https://nature.berkeley.edu/news/2019/12/researchers-link-weight-gain-inactivity-vehicle-ownership-beijing" target="_blank" rel="noopener">could become a more likely outcome</a> as well. The authors noted that in Manhattan, the heart of the US's <a href="https://www.mentalfloss.com/article/645122/most-and-least-densely-populated-cities" target="_blank" rel="noopener">most densely populated city</a> where less than a quarter of <a href="https://edc.nyc/article/new-yorkers-and-their-cars" target="_blank" rel="noopener">households own a car</a>, the obesity rate is <a href="https://www.health.ny.gov/statistics/prevention/injury_prevention/information_for_action/docs/2021-02_ifa_report.pdf" target="_blank" rel="noopener">less than half</a> that of the <a href="https://www.cdc.gov/obesity/data/adult.html" target="_blank" rel="noopener">national average</a>.<a href="https://www.businessinsider.com/more-than-half-of-us-kids-will-be-obese-by-35-2017-11">America's obesity rate</a> has shot up in recent decades, and it's had <a href="https://www.businessinsider.com/rise-of-obesity-among-young-people-creating-looming-health-crisis-2019-10">significant health consequences</a>. Experts haven't come to a consensus on why this has happened, but a failure to build housing — particularly in cities — could be part of the answer. <h2>Families may put off having kids if they don't have the space</h2>In 2021, the <a href="https://www.businessinsider.com/americans-are-moving-less-social-demographic-changes-2022-8">US fertility rate</a> remained near the <a href="https://www.advisory.com/daily-briefing/2022/05/24/us-birth-rate" target="_blank" rel="noopener">record-low 2020 figure</a> since the data became available in the 1930's. Similar to the obesity spike, experts have pointed to several explanations for the decline in past decades, including increased <a href="https://www.nbcnews.com/think/opinion/america-s-fertility-rates-are-falling-s-cause-celebration-not-ncna1276211" target="_blank" rel="noopener">accessibility to contraception</a>, the growth of women in the workforce, and the <a href="https://spendmenot.com/blog/how-much-does-it-cost-to-raise-a-child/#:~:text=The%20cost%20of%20raising%20a,the%20Urban%20West%20is%20%24245%2C460." target="_blank" rel="noopener">high cost of raising children</a>. But housing could be another piece of the puzzle. When a larger living space isn't affordable, it <a href="https://ifstudies.org/blog/higher-rent-fewer-babies-housing-costs-and-fertility-decline" target="_blank" rel="noopener">may dissuade people from starting</a> or expanding their families. The authors cited a 2016 <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2846173" target="_blank" rel="noopener">UK study</a> that found a 10% rise in house prices was associated with a 1.3% fall in overall births. A 2018 <a href="https://zillow.mediaroom.com/2018-06-06-Birth-Rates-are-Falling-Most-where-Homes-are-Appreciating-Fastest" target="_blank" rel="noopener">Zillow study</a> came to a similar conclusion when analyzing US data. And even if families manage to land a larger home, the high cost it took to acquire it may lead some to ultimately have fewer children than they had initially planned.

The housing shortage is the root of all of America's problems

<ul class="summary-list"><li><keyword id="107096" type="COMPANY" weightage="60" keywordseo="Tesla">Tesla</keyword> CEO <keyword id="6355315" type="UNKNOWN" weightage="60" keywordseo="elon-musk">Elon Musk</keyword> compared the <keyword id="10389950" type="UNKNOWN" weightage="60" keywordseo="chip-shortage">chip shortage</keyword> to the toilet paper buying frenzy in 2020.</li><li>He said the supply snags have caused companies to "overorder" semiconductor chips.</li><li>Tesla is reportedly in talks to stock up on the chips by buying in bulk ahead of time.</li></ul>Tesla CEO Elon Musk said the biggest issue the electric carmaker is facing is ongoing supply chain issues.He pointed to the <a href="https://www.businessinsider.com/global-chip-shortage-could-last-another-2-years-experts-say-2021-5">global shortage of semiconductor chips</a> that have <a href="https://www.businessinsider.com/chip-shortage-car-companies-automakers-61-billion-loss-2021-1">cost automakers billions this year.</a>"Never seen anything like it," <a href="https://twitter.com/elonmusk/status/1399999219218501633?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1399999219218501633%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2021-06-02%2Fmusk-says-panic-buying-of-chips-is-like-the-rush-on-toilet-paperaper">Musk tweeted</a> on Wednesday. "Fear of running out [of computer chips] is causing every company to overorder - like the toilet paper shortage, but at epic scale."Last year, at the onset of the pandemic, <a href="https://www.businessinsider.com/toilet-paper-coffee-products-delayed-suez-canal-blockage-impact-2021-3">many shoppers rushed to stock up on toilet paper</a> out of fear of supply chain shortages. The buying frenzy left behind empty shelves, making products like toilet paper and Clorox wipes valuable <a href="https://www.businessofbusiness.com/articles/covid-second-wave-clorox-cleaning-supplies-brands-prices/">commodities that sold on secondary markets for record prices.</a>Similarly, in recent months automakers have been rushing to stock up on the computer chips that account for about <a href="https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/technology-media-telecommunications/deloitte-cn-tmt-semiconductors-the-next-wave-en-190422.pdf">40% of a new car's cost</a>. The chip shortage has led to a <a href="https://www.businessinsider.com/cars-most-likely-impacted-by-chip-shortage-brands-models-2021-2">lack of new cars</a> and <a href="https://www.businessinsider.com/used-car-prices-saw-their-biggest-monthly-price-increase-ubs-2021-5">record-high used cars sales prices,</a> as well as burgeoning raw material costs.Tesla has not been exempt from the buying frenzy. Last week, the <a href="https://www.ft.com/content/49459668-7eab-4589-8338-059e06b9fd8a">Financial Times reported</a> that <a href="https://www.businessinsider.com/tesla-explores-paying-upfront-for-computer-chips-combat-shortage-report-2021-5">Musk's company was in talks to pay for the chips in advance</a> by putting down deposits on large orders of the increasingly scarce commodity. Tesla is also reportedly in the preliminary stages of <a href="https://www.businessinsider.com/tesla-explores-paying-upfront-for-computer-chips-combat-shortage-report-2021-5">eyeing a potential plant purchase</a> that would allow the carmaker to create its own computer chips. The global shortage of computer chips has been driven by COVID-19 plant closures, as well as <a href="https://www.businessinsider.com/cargo-ships-waiting-to-dock-california-contributes-supply-chain-crisis-2021-4">port delays and the global shipping container shortage</a>. Last month, consulting firm AlixPartners <a href="https://www.msn.com/en-us/autos/news/a-global-computer-chip-shortage-could-mean-61-billion-in-lost-sales-for-automakers-like-toyota-and-nissan/ar-BB1d96qf?ocid=a2hs">estimated automakers will lose about $110 billion this year due to the shortage.</a>Many automakers have been forced to shut down manufacturing plants and prioritize the most profitable car models they produce as a result of the shortage. Some have begun <a href="https://www.bloomberg.com/news/articles/2021-05-06/chip-shortage-forces-carmakers-to-strip-out-high-tech-features">selling cars without navigation and collision detection systems</a> - elements which require the chips - in order to meet manufacturing goals. Tesla has avoided eliminating high tech features and has even <a href="https://www.businessinsider.com/tesla-game-console-model-x-s-ps5-xbox-chipmaker-amd-2021-6">continued to add more automated elements to its cars</a>, despite its reliance on the chips, but the company has not been immune to the impact of the shortage.Last month, during the company's earnings call <a href="https://www.businessinsider.com/elon-musk-tesla-supply-chain-issues-chip-shortage-insane-difficulties-2021-4">Musk said supply-chain issues were causing "insane difficulties"</a> for the electric carmaker and the chip shortage had impacted Tesla's manufacturing goals.The supply chain snags have forced Tesla to raise prices. <a href="https://twitter.com/elonmusk/status/1399492488612691973?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1399492488612691973%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.reuters.com%2Fbusiness%2Fautos-transportation%2Fteslas-vehicle-price-increases-due-supply-chain-pressure-musk-says-2021-06-01%2F1%2F">Musk responded</a> on Monday to complaints about the automaker's rising prices on Twitter and cited inflating raw material costs and supply chain pressure.Tesla was also forced to <a href="https://www.businessinsider.com/tesla-game-console-model-x-s-ps5-xbox-chipmaker-amd-2021-6">delay the release of several of its vehicles</a> due to the chip shortage, including its Model S Plaid which is expected to come out later this month. In February, <a href="https://www.caranddriver.com/news/a35636848/tesla-stops-model-3-line-parts-shortage/">Tesla briefly halted production on its Model 3</a> at its car assembly plant in California, citing supply-chain issues.

You Searched For "electricity shortage" and got 11 results

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